What is FOB Selling Price?

FOB, standing for “Free on Board” or “Freight on Board,” is a term used in international shipping to indicate who is responsible for the goods and their transportation costs at various points during shipment. The FOB selling price refers to the cost of goods sold by a seller, including the expenses incurred until the goods are loaded onto the shipping vessel at the specified departure port. In an FOB transaction, the seller assumes all risks and costs until the goods are loaded onto the vessel. After loading, the buyer becomes responsible for any further risks and costs associated with the transportation.